A Business Is More Likely To Vertically

C A C C A D C B B PART II Market power refers to the ability of a firm to influence prices. It is synonymous with monopoly power and is based on a down sloping demand curve with very little competition.( inelastic demand) . It leads to higher prices and lower output as compared to a competitive situation. It is measured by many ways- Lerner index, Herfindahl Index, Concentration ratios and Rothschild index. It causes a dead weight loss as consumer surplus is lower, while society also pays a cost of inefficient output level. Industry concentration refers to the extent of monopoly power of firms in an industry. Once an industry group is defined we can measure the concentration used ratios that use top 4 or 8 firms market share. Higher is the ratio greater is the industry concentrated in the hands of top 4/ 8 firms. I assume the question is for Economic Network as network markets have no economic term. It refers to a collection of individuals, groups or countries that interact for the benefit of society. They use different competitive advantages and resources of each member to increase the production and gains for all members. Product